Yes. Most contractual and agency-deployed employees in the Philippine private sector are entitled to holiday pay. An employer cannot lawfully deny the benefit simply because a worker is called “contractual,” “project-based,” “casual,” “probationary,” “temporary,” or “agency-hired.”

What matters is whether the person is an employee covered by the Labor Code’s holiday-pay rules, whether the date is a regular holiday, and whether any lawful exemption applies. Agency workers generally claim the benefit from their agency or contractor, but the company where they are deployed may also be legally responsible for unpaid wages.

Are contractual employees entitled to holiday pay?

As a general rule, yes.

Article 94 of the Labor Code of the Philippines requires every covered worker to receive their regular daily wage during regular holidays, even when no work is performed. When the employee works on the regular holiday, the minimum compensation is generally twice the regular rate for the first eight hours. (Lawphil)

The law does not say that only permanent or regular employees receive holiday pay. A worker’s employment classification generally affects security of tenure and the lawful duration of employment—not the worker’s entitlement to minimum labor standards while employed.

Worker’s status	Generally entitled to holiday pay?	Important qualification
Probationary employee	Yes	Entitlement applies while employed and covered
Fixed-term or contractual employee	Yes	The contract’s expiration does not erase benefits earned before it ended
Project employee	Yes	Regular holidays falling within the active project period are generally covered
Casual employee	Yes	Casual status is not a holiday-pay exemption
Seasonal employee	Yes, during the working season	Holiday pay may not be due during a genuine off-season when the employee is not at work
Agency-deployed employee	Yes	The agency is normally the direct employer; the principal may be solidarily liable
Freelancer or independent contractor	Usually no	Labor Code holiday pay applies to employees, not genuine independent contractors
Government job-order or contract-of-service worker	Not under private-sector Article 94 rules	Entitlement depends on the government contract and applicable government regulations

Article 295 of the Labor Code recognizes regular, project, seasonal, and casual employment. These classifications do not appear among the statutory grounds for denying holiday pay. (Lawphil)

Are agency workers entitled to holiday pay?

Yes, provided they are employees covered by the Labor Code.

In a legitimate contracting arrangement, the manpower agency or service contractor is normally the worker’s employer. Section 10 of DOLE Department Order No. 174, Series of 2017 expressly recognizes the right of contractor employees to labor-standard benefits, including overtime pay, holiday pay, 13th-month pay, service incentive leave, and other benefits required by law. (Department of Labor and Employment)

The worker may be deployed at a mall, factory, hospital, office, warehouse, condominium, construction site, or other client location. Deployment at the client’s premises does not remove the worker’s holiday-pay rights.

Typical examples include:

Security guards
Janitors and housekeeping personnel
Merchandisers
Warehouse personnel
Production workers
Drivers and messengers
Encoders and administrative support staff
Maintenance workers
Agency-hired sales personnel
Construction and project workers

The agency should normally place holiday pay in the worker’s payroll. The client or principal should fund and structure its service agreement so that the contractor can comply with labor standards.

The principal may also be responsible for unpaid holiday pay

Articles 106 to 109 of the Labor Code impose solidary liability in contracting arrangements. Solidary liability means the worker may pursue the contractor and the principal for covered unpaid wages, rather than being forced to collect only from an agency that may have disappeared, closed, or become insolvent. (Lawphil)

For example, a janitorial agency cannot successfully tell workers:

“The client did not release the holiday-pay budget, so we cannot pay you.”

The agency’s billing dispute with its client does not cancel the employees’ statutory entitlement. Depending on the facts, both the agency and the client company may be named in a Request for Assistance or labor complaint.

What if the agency is engaged in labor-only contracting?

Labor-only contracting is prohibited. It may exist when the contractor merely recruits or supplies workers, lacks the legally required independence or substantial capital, or does not exercise control over its workers, while the principal effectively functions as the real employer.

When labor-only contracting is established, the principal may be treated as the workers’ direct employer. A DOLE registration certificate can be relevant, but registration alone does not conclusively prove that every deployment arrangement is legitimate. Courts and labor authorities examine the actual working relationship. (Department of Labor and Employment)

“Contractual” can mean several different things

The word “contractual” is used loosely in Philippine workplaces. Before determining holiday pay, identify what the arrangement really is.

Direct-hire fixed-term employee

The worker signs directly with the company for a stated period, such as six months or one year. A valid fixed term does not remove statutory benefits earned during that period.

A fixed-term arrangement may also be questioned when it was imposed to prevent a worker from becoming regular, particularly when the employee repeatedly performs work necessary to the employer’s usual business. The Supreme Court’s decision in Brent School, Inc. v. Zamora recognized valid fixed-term employment but did not give employers permission to use fixed terms to defeat labor protections. (Lawphil)

Project employee

A project employee is hired for a specific project or undertaking whose scope and expected completion were made known when the employee was engaged.

Project employees are generally entitled to holiday pay during the active employment period. However, a holiday that falls after the project has genuinely ended normally does not generate a new entitlement because the employment relationship has already terminated.

Seasonal employee

A seasonal employee works during a recurring season, such as harvesting, milling, tourism peaks, or particular production cycles.

Under the implementing rules, seasonal workers may not be paid holiday pay during a genuine off-season when they are not at work. Regular holidays occurring during the active season are treated differently and may be compensable. (Lawphil)

Agency or contractor employee

The employee signs with a contractor but works at the principal’s premises. Holiday pay is normally processed by the contractor, subject to the principal’s potential solidary liability.

Freelancer or independent contractor

A genuine freelancer provides services as an independent businessperson rather than as an employee. Independent contractors generally do not receive statutory holiday pay unless their service contract grants it.

However, calling someone a “freelancer,” requiring an invoice, or paying through a digital platform does not settle the issue. Labor authorities look at the actual relationship, including:

Who selects and engages the worker
Who pays compensation
Who may discipline or dismiss the worker
Who controls how, when, and where the work is performed

The power of control is usually the most important factor. A supposed freelancer who follows mandatory shifts, company procedures, supervisor instructions, attendance rules, and disciplinary policies may actually be an employee.

What is the difference between a regular holiday and a special non-working day?

“Holiday pay” technically refers primarily to regular holidays.

Type of day	If the employee does not work	If the employee works for up to eight hours
Regular holiday	100% of the daily wage, if qualified	200% of the daily wage
Regular holiday also falling on the employee’s rest day	100% if qualified and unworked	260% of the daily wage
Special non-working day	Generally no work, no pay	130% of the daily wage
Special non-working day also falling on a rest day	Generally no work, no pay	150% of the daily wage

These are statutory minimums. A collective bargaining agreement, employment contract, handbook, or established company practice may provide more favorable rates. The employer generally cannot withdraw a benefit that has become a deliberate, consistent, and long-standing company practice. In Nippon Paint Philippines, Inc. v. NIPPEA, the Supreme Court examined holiday compensation that was more favorable than the statutory minimum. (Lawphil)

Holiday classifications and dates can change through legislation and annual presidential proclamations. Employees should check the applicable presidential proclamation and the specific DOLE labor advisory for the date involved. Recent DOLE advisories continue to apply the 200% rate for work during an ordinary regular holiday. (Department of Labor and Employment)

How much holiday pay should a contractual or agency worker receive?

Assume an employee has a basic daily wage of ₱700.

Regular holiday not worked

If the employee qualifies for holiday pay:

₱700 × 100% = ₱700

Regular holiday worked for eight hours

₱700 × 200% = ₱1,400

Regular holiday worked when it is also the employee’s rest day

₱700 × 200% × 130% = ₱1,820

Overtime on a regular holiday

The overtime hours are paid at an additional 30% of the employee’s hourly rate on that holiday.

For a ₱700 daily wage:

Ordinary hourly rate: ₱700 ÷ 8 = ₱87.50
Regular-holiday hourly rate: ₱87.50 × 200% = ₱175
Holiday overtime rate: ₱175 × 130% = ₱227.50 per overtime hour

If the regular holiday is also the employee’s rest day, a higher computation applies. The DOLE Workers’ Statutory Monetary Benefits Handbook provides the standard formulas used in payroll reviews and labor inspections. (BWC Dole)

What about monthly-paid contractual employees?

Monthly-paid employees may already receive payment for unworked regular holidays as part of their monthly salary. This does not mean that working on the holiday is free.

The payroll divisor matters. A divisor such as 365 days generally indicates that rest days and regular holidays are built into the monthly salary. Other divisors may produce different daily-rate calculations. Employees should request the employer’s written computation rather than relying only on the phrase “monthly paid.” The Supreme Court has recognized that the salary divisor is important in determining whether holiday pay is already included. (Lawphil)

When can an employee lose holiday pay because of absence?

A covered employee who does not work on a regular holiday is generally entitled to holiday pay if the employee:

Worked on the scheduled workday immediately before the holiday; or
Was on approved leave with pay on that day.

An employee who was on leave without pay immediately before the regular holiday may not be entitled to payment for the unworked holiday.

When the day immediately before the holiday was itself the employee’s rest day or a non-working day in the establishment, look at the last scheduled workday before that rest or non-working day. The employee generally qualifies if they worked or were on paid leave on that earlier scheduled workday. (Lawphil)

This rule is often misunderstood. Employees are not necessarily required to report on the calendar day immediately before the holiday when that date was not a scheduled workday.

Who may be excluded from statutory holiday pay?

Common exclusions under Article 82, Article 94, and the implementing rules include:

Government employees governed by civil-service rules
Managerial employees who meet the legal duties test
Certain managerial staff
Field personnel whose actual hours of work cannot be determined with reasonable certainty
Persons in the personal service of another
Employees of retail and service establishments regularly employing fewer than 10 workers
Other genuinely unsupervised workers falling within the regulatory exclusions

A job title alone does not decide coverage. Calling an employee a “manager,” “field coordinator,” “consultant,” or “pakyaw worker” is not enough if the employee’s actual duties do not fit the exemption.

Are pakyaw, piece-rate, or task workers automatically excluded?

No. The arrangement must be examined carefully.

In David v. Macasio, the Supreme Court held that a butcher paid on a task or pakyaw basis was still entitled to holiday pay because he worked at the employer’s premises, his working time could be determined, and the employer supervised his work. Task-based payment alone did not automatically make him an excluded field employee. (Supreme Court E-Library)

This distinction is important for contractual production workers, warehouse workers, delivery personnel, construction workers, and others paid according to output. The actual degree of supervision and the ability to determine working hours can change the result.

Common holiday-pay problems involving agencies

“The client did not request deployment that day”

For a special non-working day, the no-work-no-pay rule may apply. For a regular holiday, however, a covered employee may still be entitled to the regular daily wage even without deployment.

The agency should not automatically treat every client closure as an unpaid day.

“Your salary is all-in”

An “all-in” salary clause is not automatically valid. The payroll should clearly show that the total compensation is at least equal to all legally required wages and premiums.

An employer cannot hide an underpayment by placing a single unexplained amount on the payslip.

“You are not entitled because you are not yet regular”

Holiday pay does not begin only upon regularization. Probationary, casual, project, and valid fixed-term employees are generally covered while employed.

“Your assignment ended, so the holiday is unpaid”

Determine whether the employment itself ended or only the client assignment ended.

If the project and employment genuinely terminated before the holiday, no holiday pay may accrue afterward. But if the agency merely removed the employee from one assignment while the employment relationship continued, the agency cannot necessarily avoid labor standards by calling the period “no deployment.”

“You signed a waiver”

A quitclaim or waiver is not automatically enforceable. Labor tribunals examine whether it was voluntarily signed, whether the consideration was reasonable, and whether the employee clearly understood what was being surrendered.

Statutory minimum benefits generally cannot be waived through a standard employment contract signed as a condition for getting the job.

How to claim unpaid holiday pay

1. Identify the exact dates involved

Prepare a list showing:

Date of each holiday
Whether it was a regular or special holiday
Whether you worked
Number of hours worked
Whether the day was also your rest day
Your daily or monthly basic rate at that time
Amount actually paid
Amount you believe remains unpaid

Do not combine everything into a vague statement such as “I was never paid proper benefits.” A date-by-date computation is easier to verify and settle.

2. Collect your employment and payroll records

Useful evidence includes:

Document	Why it matters
Employment contract	Identifies the employer, rate, term, and assigned position
Agency deployment or assignment notice	Connects the worker, contractor, and principal
Payslips and payroll sheets	Show what was actually paid
Daily time records, biometric logs, or timesheets	Prove attendance and hours worked
Work schedules and rest-day assignments	Establish the correct premium rate
Bank or e-wallet statements	Confirm actual wage deposits
Text messages, emails, or group-chat instructions	May prove holiday deployment and employer control
Company handbook or CBA	May provide benefits above the statutory minimum
Agency ID and client-site ID	Help establish the deployment relationship
SSS, PhilHealth, and Pag-IBIG records	May help identify the declared employer

Employers are required to maintain payroll and employment records. Once an employee establishes a credible claim, the employer generally bears the burden of proving payment through reliable records. In Trimor v. Blokie Builders and Trading Corporation, the Supreme Court reiterated that the employer must prove payment of claimed labor-standard benefits such as holiday pay. (Lawphil)

3. Request a written payroll correction

Send the agency or employer a written request containing:

The affected holiday dates
Your wage rate
Hours worked
Amount received
Your proposed computation
Copies of supporting records
A reasonable deadline for a written payroll explanation

Keep proof that the request was received. For agency deployments, copy the client’s human-resources or contract-administration office when appropriate.

4. File a SEnA Request for Assistance

If the employer does not correct the payroll, the usual practical first step is the Single Entry Approach, or SEnA. You generally begin with SEnA rather than a barangay complaint.

A Request for Assistance may be filed:

Online through the DOLE Assistance for Request Management System
At a DOLE regional, provincial, field, or district office
At an NLRC Regional Arbitration Branch
At participating National Conciliation and Mediation Board offices

Under Republic Act No. 10396 and DOLE Department Order No. 249, Series of 2025, SEnA provides a 30-day mandatory conciliation-mediation process for labor and employment disputes. Workers may file individually or as a group. (DOLE ARMS)

When the worker was supplied by an agency, it is often practical to identify both:

The agency or contractor; and
The principal or client company.

A relative may file for an absent or incapacitated worker in appropriate cases, but a Special Power of Attorney may be required. This is particularly useful for overseas Filipinos pursuing claims connected with previous employment in the Philippines. (DOLE ARMS)

5. Proceed to the proper labor office if there is no settlement

If SEnA does not resolve the matter, the claim may proceed to the proper forum.

A straightforward labor-standards violation may be handled through the appropriate DOLE regional process. Cases involving dismissal, disputed employer-employee relationships, labor-only contracting, reinstatement, or broader monetary claims commonly proceed before a Labor Arbiter of the NLRC.

The SEnA desk can issue the appropriate referral or explain the next filing step based on the issues raised.

6. Do not wait beyond the three-year period

Article 306 of the Labor Code generally requires money claims arising from employment to be filed within three years from the date each claim accrued.

Each unpaid holiday ordinarily has its own accrual date. An employee should not wait until resignation or termination before reviewing unpaid holiday pay. (Lawphil)

Frequently Asked Questions

Can an agency legally say that contractual workers receive no holiday pay?

Not as a blanket rule. Agency employees are expressly entitled to statutory labor benefits, including holiday pay, when covered by the Labor Code. The agency must identify a genuine legal exemption rather than relying on the word “contractual.”

Do I need to work for one year before receiving holiday pay?

No. Holiday pay is not conditioned on completing one year of service. That one-year requirement is associated with service incentive leave, not ordinary holiday-pay coverage.

Am I entitled to holiday pay while probationary?

Generally, yes. Probationary status is not an exemption from Article 94.

What if the regular holiday falls on my scheduled day off?

If you do not work and otherwise qualify, you generally receive the ordinary unworked holiday pay. If you work and the date is also your rest day, the minimum rate for the first eight hours is generally 260% of your daily wage.

What if the agency’s client is closed during the regular holiday?

A client closure does not automatically remove holiday pay. A covered employee may still receive 100% of the daily wage for an unworked regular holiday, subject to the attendance and coverage rules.

Can the agency deduct holiday pay from the client’s service charge?

The agency and client may decide how to price their service agreement, but they cannot pass a statutory underpayment to the worker. Holiday pay must be paid regardless of internal billing disputes.

Who should pay me—the agency or the company where I work?

The agency normally processes payment because it is the direct employer in a legitimate contracting arrangement. However, the principal may be solidarily liable for unpaid wages. If the arrangement is labor-only contracting, the principal may be treated as the direct employer.

Are foreign employees in the Philippines entitled to holiday pay?

A foreign national who is legally employed in the Philippines is generally protected by Philippine labor standards in the same way as a Filipino employee, unless the person falls under a lawful exemption such as genuine managerial status. Nationality alone is not a holiday-pay exemption.

Can I claim holiday pay after I resign?

Yes, provided the claim has not prescribed. Resignation does not erase benefits already earned. File within the three-year period and retain payslips, attendance records, and proof of your employment.

What if I have no payslips or time records?

Use available secondary evidence such as bank deposits, messages, schedules, photographs, agency IDs, workplace logs, co-worker statements, and government contribution records. In labor-standard claims, the employer’s failure to produce payroll records can weaken its claim that payment was made.

Key Takeaways

Most private-sector contractual, probationary, project, casual, seasonal, and agency-deployed employees are entitled to holiday pay while actively employed.
Employment labels do not override Article 94 of the Labor Code.
An unworked regular holiday is generally paid at 100%; work during the regular holiday is generally paid at 200% for the first eight hours.
Work on a regular holiday that is also a rest day is generally paid at 260%.
Special non-working days usually follow the no-work-no-pay rule unless the employee works or a more favorable policy applies.
The agency normally pays deployed workers, but the principal may be solidarily liable for unpaid holiday pay.
Pakyaw or task-based payment does not automatically remove holiday-pay rights.
Keep contracts, payslips, attendance records, schedules, and deployment documents.
Unresolved claims may be filed through DOLE’s SEnA process, including through the online ARMS portal.
Employment money claims should generally be filed within three years from the date each unpaid benefit became due.